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Wanner Reports on OECD Digital Economy Policy Meetings

Published on May 17, 2023

The 91st Session of the OECD Committee on Digital Economy Policy (CDEP), which convened May 10-11, featured substantively rich discussions on various topics of interest and concern to USCIB members, according to USCIB VP for ICT Policy Barbara Wanner, who was on the ground in Paris covering the meetings as part of a Business at OECD delegation.

Topics included the launch of the Global Forum on Technology (GFT) under theme “Shaping Our Future at the Tech Frontier,” the AI Governance Working Party’s future work on generative AI, and the OECD’s potential role in taking forward the G7’s call for the Institutional Arrangement for Partnership (IAP) to operationalize the Data Free Flows with Trust (DFFT) concept, among other topics.

“A high point of the meeting was a presentation by Japan about the Ministerial Declaration of the G7 Digital and Tech Ministers issued on April 30,” said Wanner. “The Declaration calls for establishing the IAP to bring governments and stakeholders together to operationalize the DFFT through principles-based, solutions-oriented, evidence-based, multistakeholder and cross-sectoral cooperation.”

“The Declaration is an important foundation for operationalizing data free flow with trust and other bilateral/multilateral agreements to further trusted cloud environments, but there is more work to be done to unlock the full potential of digitization,” added Wanner.

Regarding the next GFT, Israel announced it will host the meeting on November 27 in Tel Aviv. The theme will be “Challenges Posed by Quantum Technologies and National Strategies for Emerging Technologies.” This will be followed by the 92nd OECD CDEP meeting, November 28-29, also in Tel Aviv.

According to Wanner, Business at OECD commended the work done to date in launching the GFT. BIAC also reiterated its interest in making meaningful contributions to the GFT, noting that more than 60 percent of investment in new technologies is from the private sector.

Other topics addressed at CDEP that are of interest to USCIB members included, Transparency Reporting on Child Sexual Exploitation and Abuse (CSEA), a draft outline for a report on “Human rights in the digital age: shaping a human-centric digital transformation,” financing broadband networks of the future, identifying common guideposts for identifying AI risks and developing a comprehensive roadmap on generative AI.

Business at OECD further noted the relevance of its May 9 workshop on “Privacy, Immersive Technologies, and the Metaverse,” which is part of a project dedicated to exploring the implications of immersive technologies on for the OECD Privacy Guidelines and urged that this work be fed into the GFT process. The USCIB Foundation has been supporting this project.

Finally, the CDEP Secretariat announced the appointment of Jerrard Sheehan as new director of the OECD Science, Technology, and Innovation Bureau (STI). Sheehan, who succeeds Andrew Wyckhoff, will begin July 10, 2023. He is currently Deputy Director for Policy and External Affairs at the National Library of Medicine at the U.S. National Institutes of Health and will bring more than 30 years of experience in policy development, scientific data, and information technology.

USCIB, OECD, BIAC Roundtable on AI Considers Path Forward to Make AI More Trustworthy

Published on May 10, 2023

Artificial Intelligence (AI) has the potential to drive economic growth and commercial activity, as well as to improve lives. AI deployment and applications have swept across many sectors and have been embraced by a broad array of companies, beyond traditional “tech companies.” However, different frameworks and standards for AI have also emerged, aimed at ensuring that AI systems are “human-centric” and “trustworthy” and to safeguard against AI misuse that can undermine personal privacy and online security protections, support decision-making biases that exacerbate social inequality and cause disruptions in the labor market.

Against this backdrop, USCIB launched the Joseph H. Alhadeff Digital Economy Roundtable Series as a virtual event on April 26. The event was a joint initiative of USCIB, Business at OECD (BIAC) and the Organization for Economic Cooperation and Development (OECD) and addressed the topic “Advancing Implementation of the OECD AI Principles Across Sectors.” Representatives from companies such as IKEA, LEGO and Walmart discussed non-traditional use cases of AI in delivering products and services and shared experiences about how their respective companies are assessing and addressing potential risks of AI.

“What we’re seeing is that AI can increase safety and quality of the associate and customer experience,” said Walmart Senior Vice President and Chief Counsel of Digital Citizenship Nuala O’Connor. “As long as we are fair, accountable, transparent, and we embed those values into the use of AI, we believe AI can be a trust enhancer. Digital trust is essential to our brand and our company in the future, and we continue to strive to be the world’s most trusted retailer.”

“If done right and consistent with principles, including the OECD AI Principles, the impact of AI can be positive,” added LEGO Global Lead on Digital Policy Adam Ingle. “But there are workforce challenges and other risks that we can’t walk blindly into. The nature of our conversation on this panel shows that everyone is aware of the risk and that we’ll find a solution that is a net benefit.”

During the panel on “Government and Standards Setting Perspectives,” experts from both the OECD and government agencies examined how ground-breaking AI Principles provide a foundational reference for companies across all industries so they might feel more confident that their AI deployment is trustworthy.

“The OECD previewed work aimed at promoting global consistency in frameworks and standards to ensure that AI systems deployed are trustworthy, human-centric, accountable and ethical,” said USCIB Vice President for ICT Policy Barbara Wanner.

Furthermore, representatives from the U.S. and UK, as well as technical organizations such as DG-Connect and IEEE, discussed how they will be working with the OECD to identify common guideposts to assess AI risk and its trustworthiness. They also reviewed their own frameworks, responded to business concerns and considered the prospects for greater global interoperability.

Participants also heard from AI pioneers such as Amazon Web Services, Google, GSMA, Microsoft and RELX on the way forward.

“Standards will be our short cut to interoperability,” said Marc Etienne Ouimette, global lead for AI policy at Amazon Web Services. “It’s likely that different jurisdictions will have different risk tolerances, or different understandings of what constitutes high risk AI. Notwithstanding this, standards (and audits and assessments against these) will be the method by which we will define what good development/deployment is (what the “good” is). When jurisdictions embrace international standards, they allow for differences in regulatory approaches while ensuring access to and alignment with global markets. This provides the right type of enabling environment for responsible AI, a key OECD recommendation.”

USCIB has released a report of the Roundtable. Please click here to access the summary report.

USCIB Corporate Responsibility and Labor Affairs Committee Deliberates Specific Outcomes on Strategy, Policy Approaches

Published on May 9, 2023
USCIB Director for Corporate Responsibility and Labor Affairs Ewa Staworzynska

The USCIB Committee on Corporate Responsibility and Labor Affairs (CRLA) met in Washington DC May 3-4 to discuss a wide range of issues faced by U.S. business in international fora. Committee chairs, David Barnes (IBM) and Tam Nguyen (Bechtel), opened the two-day meeting that included 35 member companies, U.S. government speakers, European partners and a guest speaker from AFL-CIO.

The meeting also served as an official introduction to the Committee’s two new vice chairs, Melissa Kopolow (Albright Stonebridge Group) and Ryan Larsen (Walmart), as well as the new USCIB Director for Corporate Responsibility and Labor Affairs Ewa Staworzynska.

Specific issues discussed by members over the course of the two-days included the OECD Guidelines for Multinational Enterprises (MNE Guidelines), the UN Biding Treaty for Business and Human Rights, the upcoming June International Labor Organization (ILO) Conference negotiations related to just transition and apprenticeships and proposed EU legislation. Members shared their feedback on strategic priorities and discussed how to further advance U.S. business’ perspective in global policy.

The meeting was the first time the Committee met in person since before the pandemic and member companies expressed their appreciation to the CRLA leadership and highlighted the importance of meeting in person. The meeting also reinvigorated the committee’s work; as a member-based organization, listening to members is the main priority for USCIB staff. The next CRLA Committee meeting will take place in the fall.

At UN STI Forum, USCIB and IOE Deliver Side-Event on Innovation Solutions in Africa 

Published on May 5, 2023
Top left to right: Norine Kennedy (USCIB), Edward Obiko (Microsave), Megan O’Neill (Microsoft) Bottom left to right: Dr. Cosma Zavazava (ITU), Inhee Chung (Samsung), Jehiel Oliver (CEO, Hello Tractor)

On the occasion of the UN Science, Technology and Innovation in Africa Day, USCIB co-organized with the International Organization of Employers (IOE) an official virtual side event, Catalytic Private Sector Innovation Solutions in Africa. The side event focused on technology and innovation partnerships as catalysts to advance the sustainable and resilient graduation of Least Developed Countries (LDCs), most of which are located in Africa. The event preceded the eighth UN Science, Technology and Innovation Forum (STIF) in New York, a key meeting preparing for the UN SDG Summit in September. 

“Driving meaningful change in Africa will depend on sustained engagement by local business communities working with global business partners across all sectors,” said USCIB Senior Vice President for Policy and Global Strategy Norine Kennedy. “This catalytic dynamic is key to deploying the science-based solutions that underpin SDGs and Our Common Agenda (OCA) implementation.” 

The event focused on ensuring that business is part of the conversation relating to the science-policy interface, to listen, to learn and engage with stakeholders towards collective bottom-up actions that are needed for the implementation and integration of solutions that have real impact on the ground. 

Dr. Cosmas Zavazava, director of the Telecommunication Development Bureau at the International Telecommunications Union (ITU), gave keynote remarks. Zavazava called for a new era of partnerships. ITU is partnering with businesses on the ground in Africa and globally through programs such as the Innovation and Entrepreneurship Alliance for Digital Development, Partner2Connect Digital Coalition, and Giga Global—a joint global initiative by ITU and UNICEF that aims to connect every school to the Internet and every young person to information, opportunity and choice.  

“Public private partnerships are essential to drive digital innovation, build human capacity and deliver much-needed infrastructure to connect the unconnected,” said Zavazava.  

Participants also heard from a panel of experts, which included Shea Gopaul, IOE special representative to the UN, Hasna Barkat Daoud (Employers Federation of Djibouti), Megan O’Neill from USCIB member Microsoft, Jehiel Oliver, CEO at Hello Tractor, Edward Obiko (Microsave) and Inhee Chung (Samsung).  

Over 40 participants tuned into the meeting from across the globe, ranging from countries such as Belgium, Djibouti, Egypt, Ghana, India, Kenya, Nigeria, South Korea, Turkey and the United States.  

At STI Forum, Ratzan Presents USCIB Foundation Initiatives That Help Advance SDGs

Published on May 5, 2023
Dr. Scott Ratzan

During the eighth annual UN Multi-Stakeholder Forum on Science, Technology and Innovation for the SDGs (STI Forum), held in New York May 3-4, The USCIB Foundation’s Dr. Scott Ratzan made remarks as a lead discussant to support evidence-based policy to solving interconnected and complex challenges society is facing. Ratzan joined other panelists from civil society to speak during the Opening Session of the Forum, “Strengthening Trust in Science and Technology.”

Ratzan’s remarks raised the importance and relevance of several projects led by The USCIB Foundation and its partners around the globe. These initiatives include Business Partners for Sustainable Development (BPSD), Business Partners to CONVINCE (BP2C), the Business Partner Roundtable series and a global BP2C-related campaign, There’s More To Be Done.

BP2C was launched in 2020 at the UN High Level Political Forum (HLPF) during the height of the pandemic. The goal of the initiative is to engage the private sector and motivate employers to build confidence, vaccine literacy and support the benefit of COVID vaccines.

“Today, we work in partnership along with academics, NGOs and other stakeholders to advance vaccine literacy and to address challenges with misinformation and to cover general vaccines for employers of all sizes,” said Ratzan. “Along with the collaboration of USCIB’s global network—the International Organization of Employers (IOE), the International Chamber of Commerce (ICC) and Business at OECD, as well as USCIB member, the Society for Human Resource Management (SHRM), the There’s More To Be Done campaign includes advancement of vaccine literacy and uptake and other key areas for employers to integrate in their workplace strategies.

There’s More To Be Done includes Learning Modules and resources promoting the important role of vaccine literacy and other key issues for trustworthy communication and effective COVID recovery.

“We intend to evolve this campaign to advance health and well-being on the planet,” added Ratzan. “At this historical time rebounding from the first pandemic in a century, we need to build support for science, technology and innovation with trustworthy local and global partners. We welcome the opportunity to engage at all levels from global, national, regional to local – to advance the global goals.”

Ratzan also noted that the next Business Partner Roundtable will address infrastructure (SDG 9) and will be held in partnership with the Wilson Center in Washington DC. In the latter part of 2023, there will be a Roundtable on climate change and food security.

“We intend on sharing ideas with the broad UN community and stakeholders throughout the globe as we embrace SDG 17 partnerships for the Goals,” said Ratzan. “All of these multisector activities work to support the mission of the STI Forum.”

The session was moderated by Quarraisha Abdool Karim who is the co-chair of the UN Secretary General’s ten-member group supporting the Technology Facilitation Mechanism.

The theme for this year’s Forum was “Science, technology and innovation for accelerating the recovery from the coronavirus disease (COVID-19) and the full implementation of the 2030 Agenda for Sustainable Development at all levels.”

To view the full Session, please click here.

USCIB Files Submission With FTC on Non-Compete Clauses in Employment Contracts

Published on May 3, 2023

USCIB filed a submission with the Federal Trade Commission (FTC) April 19, opposing its proposed rule to ban employers from utilizing non-compete clauses in employment contracts, a practice that violates Section 5 of the Federal Trade Commission Act, according to the FTC.

USCIB’s submission argues not only that the FTC lacks rule-making authority to even issue the proposal, but the proposed rule makes improper assumptions regarding the applicability of state law versus a federal blanket ban and that trade secrets safeguards serve as a substitute for non-competes. The proposed rule would ban non-competes for high income workers or workers with access to confidential information, which is a an essential tool for companies to protect intellectual property, trade secrets and other confidential information. The submission makes the strong case that non-competes should continue to be allowed on a case dependent basis.

“USCIB challenges the lack of evidence and methodologies used to support the FTC’s proposed rulemaking on non-competes clauses and is alarmed about the deleterious impacts a blanket ban would have on U.S. industries,” said USCIB Vice President for International Investment and Trade Policy Alice Slayton Clark. “Not only does it break with longstanding legal precedent such as the consumer welfare standard and fact-specific inquiry, but it will irreparably harm U.S. companies that rely on non-competes to safeguard intellectual property rights and trade secrets.”

The FTC has received over 15,000 comments on its proposal, showing the broad impact it would have on companies and workers.  To read the full submission, click here.

USCIB Urges G7 Leaders to Advance Data Free Flows With Trust

Published on April 26, 2023

USCIB co-signed a letter to G7 leaders urging them to explore concrete approaches to advancing Data Free Flows with Trust (DFFT). Japan promoted the DFFT concept when it hosted the G20 process a few years ago and the OECD also is taking this on. The letter was signed by 35 other global industry and non-governmental organizations.

According to the signed organizations, including USCIB, the DFFT strengthens the ability to transfer data across transnational digital networks while building digital trust. The organizations signing the letter emphasized the ability to access and transmit information across transnational digital networks as supportive of governmental policy objectives, including those relating to cybersecurity, digital transformation, environmental sustainability, financial inclusion, health, innovation, privacy, and trade.

According to USCIB Vice President for ICT Policy Barbara Wanner, such concrete approaches to advancing the DFFT include aligning data transfer policies across economies and with international standards, promoting and strengthening cross-border data interoperability mechanisms, analyzing the importance of data transfers in key sectors, as well as collectively supporting the OECD Declaration on Government Access to Personal Data Held by Private Sector Entities.

USCIB Discusses OECD Country Program for Ukraine Reconstruction and Redevelopment

Published on April 26, 2023
Left to right: Rick Johnston, Alice Slayton Clark, Bill Tompson, Will Davis

USCIB Trade and Investment Committee Chair and Chair of BIAC Rick Johnston (Citi) and USCIB Vice President for International Investment and Trade Policy Alice Slayton Clark met last week with Bill Tompson, head of the OECD Eurasia Division and Will Davis, head of the OECD Washington Center, to discuss the OECD Country Program for Ukraine to help with reconstruction and redevelopment.

Following the OECD Council’s recognition of Ukraine as a prospective member, OECD is working in close consultation with the government of Ukraine on a four-year Country Program that will enable Ukraine to access OECD expertise and build capacity to respond to domestic policy priorities while also supporting recovery and reconstruction efforts. Financing of the Country Program, estimated to be 16 million EUR over four years, will be secured through grants from OECD members and donors. The Multi-Agency Donor Co-ordination Platform for Ukraine is co-chaired by the United States, the EU, and Ukraine and will help with coordinating fundraising efforts.

“The OECD Country Program will offer Ukraine important information at a time when it seeks to reform its economy and governance structures to attract and sustain the critical international trade and investment needed to recover and prosper after the war, said Clark. “The Program will provide Ukraine with critical knowledge about international best practices, increased participation in selected OECD bodies, tailor-made reviews and peer learning from an enhanced network of international experts and peers, and importantly, stronger links with the OECD community.”

The Country Program for Ukraine will be reviewed and transmitted to OECD Council at the next OECD Ministerial Council (MCM) meeting that will take place June 7-8.

Country Programs provide a structured and strategic form of engagement and cooperation with selected partner countries that, while not formally linked to the OECD accession process, have proven a willingness and ability to meet OECD standards and practices. They are a recently established OECD global relations tool.

UNCITRAL Reaches Agreements on Code of Conduct for Arbitrators

Published on April 13, 2023

The United Nations Commission on International Trade Law’s (UNCITRAL) Working Group III (WG III) reached agreement on a code of conduct for arbitrators during meetings at the United Nations headquarters in New York late last month. While the code of conduct imposes some limits on roles arbitrators can take in investment disputes proceedings, USCIB successfully advocated for narrower restrictions.

WG III was set up by the United Nations in 2017 to identify concerns and explore reforms relating to the operation of the Investor-State Dispute Settlement (ISDS) system. According to USCIB Vice President for International Investment and Trade Policy Alice Slayton Clark, this is the first time that agreement has been reached on text in over five years of WG III deliberations.

The agreement imposes temporary bans under certain scenarios on so-called “double hatting,” where an arbitrator can also serve as counsel in ISDS cases. Arbitrators would be subject to “cooling-off periods,” which vary from one to three years, depending on whether the two cases involve same measures, same or related parties, or same provisions in the same treaty. Delegates agreed to longer cooling-off periods for same measures and related parties, but shorter periods for same treaty, an important “win” for investors since it is not uncommon for multiple cases to arise under the same treaty and, in those cases, investors want to have maximum options in terms of their choice of arbitrator and counsel.

“USCIB has participated in WGIII discussions as a non-governmental organization since the start, advocating for balanced reforms that improve ISDS for both states and investors,” said Clark. USCIB member Lauren Mandell of WilmerHale has worked diligently with USCIB staff to promote member interests at UNCITRAL throughout this process.

In addition to the code of conduct for arbitrators, WG III also agreed on ethics rules for judges sitting on a permanent multilateral investment court, a structure that does not exist and that USCIB does not support. Because there is no agreement that there will even be a multilateral court, the final code has numerous caveats, with the European Union, the lead proponent of the court, acknowledging that the code may need to change based on the actual design of the court.

Lastly, WG III agreed to a set of technical provisions to encourage, rather than require, parties to mediate disputes as an “offramp” before parties turn to ISDS. Mediation may not be appropriate in a given dispute and could waste time and money when the other side is not seriously interested in the process.

The UNCITRAL Commission will finalize and endorse the three documents at its annual meeting in July.

USCIB Advocates for Implementable, Workable OECD Guidelines for Multinational Enterprises

Published on April 5, 2023

During the meeting of the OECD Responsible Business Conduct (RBC) Working Party in Paris last week, USCIB’s Corporate Responsibility and Labor Affairs team – Director Ewa Staworzynska and Policy Manager Jose Arroyo – attended the sessions as part of Business at OECD (BIAC) delegation for the ongoing update of the OECD Guidelines for Multinational Enterprises (Guidelines).

The Guidelines are a set of recommendations from governments to businesses for ensuring responsible business conduct.

According to Arroyo, the BIAC delegation conveyed to OECD governments relevant points to make sure the Guidelines are implementable and workable for business while maintaining a high bar for responsible business conduct.

“USCIB and BIAC were able to get support in the room from several governments as we continue to address key issues that remain to be resolved,” said Arroyo.

“A common line of reasoning is that the Guidelines are voluntary and, therefore, can go well beyond what is asked of business in legislation. However, we insisted that if the Guidelines are increasingly referenced in new law bills, and should these bills pass, there may be substantial practical challenges for business.”

USCIB and BIAC advocated for new language that clarify the intent of the Guidelines, meaning they are not designed to be applied in hard law. Ultimately, governments will have the last word on the issue, according to Arroyo. Other challenges discussed were the downstream due diligence approach and substantial changes in the Environment Chapter.

USCIB, as the U.S. affiliate to BIAC, has been the only U.S. business association on the ground for all the OECD RBC Working Party meetings.

“We are in the home stretch of the update, and we thank all USCIB members who provided their expertise, inputs, questions and concerns to secure a workable, implementable document,” said Arroyo.

The Guidelines are expected to be approved by the OECD in June and USCIB will continue to advocate for the business community for a workable outcome while promoting the highest standards of responsible business conduct.